XRP’s price is up about $2.17 today, a 5.43% move in the last twenty four hours. But the bigger question dominating the community is simple. If six XRP ETFs have launched and millions of dollars are flowing in every day, why is XRP not exploding higher?

Over the past few weeks, new ETFs from Amplify, Bitwise, Canary, Rex-Osprey, Franklin Templeton and Grayscale all went live. Many had predicted a breakout toward $3. Instead, XRP dipped. It was not alone. The broader crypto market corrected sharply and Bitcoin slid toward the $80k.

Here is what is really happening.

ETF inflows are not the main force driving the market

Bloomberg analyst James Seyffart addressed the confusion directly. He explained that investors are making the same mistake they made during the early days of the Bitcoin ETF era. ETFs can take in hundreds of millions of dollars, but that does not automatically push prices higher.

The main driver of crypto prices is still spot market activity on exchanges like Binance, Coinbase and Kraken. That is where real buying and selling pressure forms. ETFs are only one piece of a much larger market. They add liquidity and structure, but they do not overpower the behavior of traders and holders on spot markets.

ETFs now use creation and redemption, but impact is still limited

Since September, new generic listing standards allow issuers to hand over the actual asset to create ETF shares. This applies to Ethereum, Bitcoin, XRP, Solana, Hedera and Litecoin products. It makes the system more efficient and transparent.

However, Seyffart said that this change does not suddenly give ETFs the power to dictate prices. It simply ensures they are backed by real assets rather than synthetic exposure.

Much of the ETF volume is not new money

One of the most overlooked details is where the ETF inflows originate. A large portion of the early volume in XRP ETFs comes from investors who already owned XRP. They did not buy new coins. They simply transferred their holdings into an ETF for reasons like estate planning, tax advantages or long term custody.

If someone moves fifty million dollars worth of XRP from a hardware wallet into an ETF, it registers as ETF inflow. But it does not create new buying pressure in the market.

This is why millions can appear to be flowing in while the price barely moves.

The broader crypto market corrected at the same time

XRP did not fail in isolation. Bitcoin nearly touched eighty thousand dollars, dragging altcoins lower. Market-wide corrections overshadow ETF launches. Even strong inflows could not counteract selling pressure across the entire sector.

When macro conditions weaken, ETFs cannot hold the market up on their own.

SEC delays slowed the altcoin ETF ecosystem

Another factor was the forty two day government shutdown. It became the longest forced break in US history and temporarily halted SEC operations. That slowed down processing of filings for new altcoin ETFs and delayed market expansion.

Now that the SEC is back, timelines are moving again, and several more products are lining up for approval.

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